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Introduced Version House Bill 2351 History

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Key: Green = existing Code. Red = new code to be enacted
H. B. 2351


(By Delegate Blair)
[Introduced January 13, 2010; referred to the
Committee on the Judiciary then Finance.]




A BILL to amend and reenact §29-22B-702 and §29-22B-1102 of the Code of West Virginia, 1931, as amended, all relating to prohibiting the placement of automated teller machines in establishments that contain video lottery terminals and allowing only fraternal and veteran's organizations to reapply for permits to operate video lottery terminals.

Be it enacted by the Legislature of West Virginia:
That §29-22B-702 and §29-22B-1102 of the Code of West Virginia, 1931, as amended, be amended and reenacted, all to read as follows:
ARTICLE 22B. LIMITED VIDEO LOTTERY.
§29-22B-702. Additional duties of limited video lottery retailers.
In addition to the general duties imposed on all licensees in article twenty-two-b section seven hundred one, a limited video lottery retailer shall:
(1) Attend all commission mandated meetings, seminars and training sessions concerning operation of video lottery terminals, the validation and redemption of video lottery winning tickets and the operation of all ticket validation terminals and equipment;
(2) Maintain all skills necessary for the accurate validation of video lottery tickets;
(3) Supervise video lottery operations and ticket validation procedures at the applicable location;
(4) Permit no person to tamper with or interfere with the operation of any video lottery terminal;
(5) Ensure that telephone lines from the commission's central control computer to the video lottery terminals located at the approved location are at all times connected, and prevent any person from tampering or interfering with the operation of the telephone lines;
(6) Ensure that video lottery terminals are within the sight and control of designated employees of the limited video lottery retailer;
(7) Ensure that video lottery terminals are placed and remain placed in the specific locations which have been approved by the commission. A video lottery terminal in a restricted access adult-only facility may not be relocated within the facility without the prior written approval of the commission;
(8) Monitor video lottery terminals to prevent access to or play by persons who are under the age of 21 years or who are visibly intoxicated;
(9) Maintain at all times sufficient change and cash in the denominations accepted by the video lottery terminals;
(10) Provide no access by a player to an automated teller machine (ATM) in the restricted access adult-only facility where video lottery games are played, Accept no credit card or debit card from a player for the exchange or purchase of video lottery game credits or for an advance of coins or currency to be utilized by a player to play video lottery games and extend no credit, in any manner, to a player so as to enable the player to play a video lottery game;
(11) Except as provided in subdivision (12) of this section, an automated teller machine (ATM) may not be located on the premises of an establishment that has video lottery machines;
(12) In an instance in which gambling premises are located in a building with another business establishment or commercial activity and there is no physical barrier or clear demarcation between the area in which gambling takes place and the area in which other activity takes place, an automated teller machine may not be installed or situated within fifty feet of a video lottery machine. For the purposes of this section, "clear demarcation" means any combination of a doorway and signs indicating to a customer entering the doorway from either direction that the area in which the customer is about to enter is an area where gambling takes place or where other, nongambling activity or transactions take place;
(11) (13) Pay for all credits won upon presentment of a valid winning video lottery ticket;
(12) (14) Report promptly in writing to the operator and the commission all video lottery terminal malfunctions and notify the commission in writing of the failure of an operator or service technician to provide prompt service and repair of the terminals and associated equipment;
(13) (15) Conduct no video lottery advertising or promotional activities;
(14) (16) Not use the words "video lottery" in the name of the approved location, or in any directions or advertising visible from outside the retailer's establishment;
(15) (17) Install, post and display prominently within or about the approved location signs, redemption information and other promotional material as required by the commission;
(16) (18) Permit video lottery to be played only during those hours established and approved by the commission: Provided, That the limited video lottery retailer shall not permit video lottery to be played beyond the hour during which liquor may be served;
(17) (19) Contract with no more than one licensed operator for the placement of video lottery terminals at the licensed location;
(18) (20) Maintain insurance covering all losses as the result of fire, theft or vandalism to video lottery terminals and associated equipment; and
(19) (21) Comply with all applicable provisions of this article and rules and orders of the commission.
§29-22B-1102. Permits to operate video lottery terminals; expiration date; annual fee to be paid by May 1st.

(a) The Lottery Commission shall establish forms for an operator's permit to own or lease and operate video lottery terminals and a permit for a limited video lottery retailer that allows the holder to own or lease video lottery terminals from a licensed manufacturer. The number of video lottery terminals that a person may own or lease or have on a limited video lottery retailer premises shall be stated in the license or permit issued by the commission as provided in this article.
(b) Permits shall be issued by the commission for a period of 10 years, except that all permits expire on June 30, 2011, unless they are sooner surrendered, modified, suspended or revoked as provided in this article. Provided, That the
(c) Notwithstanding any provisions of this code to the contrary, only the following may apply for renewal of licenses to operate video lottery terminals:
(1) A fraternal beneficiary society that is exempt from federal income tax under section 501(c)(8) of the Internal Revenue Code of 1986, as amended;
(2) A domestic fraternal society that is exempt from federal income tax under section 501(c)(10) of the Internal Revenue Code; or
(3) A veteran's organization that is exempt from federal income tax under section 501(c)(19) of the Internal Revenue Code.
(c) The annual fee imposed by this part for each video lottery terminal authorized in the permit shall be paid on or before May 1 each year.



NOTE: The purpose of this bill is to prohibit the placement of automated teller machines (ATM) in establishments that contain video lottery terminals and to only allow fraternal and veterans organizations to renew their licenses for limited video lottery.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.
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